ICICI Prudential Life Insurance posted a net profit of ₹576 crore for the nine months ended December 31, slightly higher than ₹569 crore in the year-ago period.
Value of new business, a measure of profitability, rose 23.2 per cent year-on-year to ₹1,710 crore for the nine-month period ended December 31. VNB margin increased from 27 percent to 32 percent.
New business insurance grew 34.9 per cent year-on-year to Rs 6.9 lakh crore, as a result of which the company’s market share on new business insurance increased to 14.6 per cent from 12.7 per cent in the year-ago period.
doubling vnb
“We are close to achieving our aspiration of doubling FY19 VNB by FY23. This consistent track record of healthy compounding of VNB, and almost doubling of VNB margins is the result of our transformational diversification across products, distribution partnerships and customer segments, which began in FY2019,” said NS Kannan, MD & CEO.
Annualized premium equivalent (APE) for the annuity business was up 56.0 percent, while it was 22.7 percent higher for the protection business. The two segments account for nearly 50 per cent of total new business premium in 9MFY23 and offer tremendous growth opportunity, the insurer said in a release.
firmness ratio
The 13th month persistence ratio of ICICI Prudential Life improved to 86.1 per cent for 9MFY23 from 84.8 per cent a year ago. The persistence ratio at 49th month was also better than 63.0% at 66.0%.
The company’s AUM stood at Rs 2.5 lakh crore at the end of December. The solvency ratio stood at 212.2 per cent against the regulatory requirement of 150 per cent.